Dear Sir,
Attached is the pre-budget recommendation of Mr. Rajji Rai, President, Travel Agents Association of India along with his photograph, to you for publication
Recommendations by Rajji Rai, President Travel Agents Association of
We at TAAI have requested the Finance Minister to grant export industry status to the tourism industry in
- Exemption of Service Tax to travel agents for at least for 5 years. There could be consideration of differential of taxation - for inbound, for outbound, and for domestic agents.
- 80 HHD of Income Tax Act - revive the benefits of section 80 HHD to the tourism industry in its original form. These are needed for the tourism industry to set an aggressive growth path to lure foreign tourists into the country and needs continues encouragement.
- Reduction of taxation on ATF which directly affects airfares.
- Inter-State Vehicle Taxation - a beginning has been made in the NCR (National Capital Region Area) - the same should be introduced all over
- Increase in Service Tax abatement for Domestic/ Adventure Tour Operators
- Deduction of Tax at source under Section 194-I of Income Tax Act - TAAI strongly recommend that the Section 194-I of Income Tax Act should not be applicable on hotel rooms being booked by the tour operators and travel agents, as these rooms are booked only for short stay of the tourists.
State Luxury TAX -. Luxury tax in some of the states is very high and varies from 5% to 20 % in different states as they have their own criteria. In the bargain, the tourism industry suffers
If you would require any clarification or any other additional inputs kindly let us know.
Regards
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| Farheen Ahmed | Perfect Relations Ltd. L 93/94,Lajpat Nagar II |
| Tel: 91-11-46667666 Fax: 91-11-46667603 |
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